The Slovenia Times

Banka Celje Eligible for State Aid

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Banka Celje has an estimated capital shortfall of EUR 388m under the worst-case scenario, according to stress tests whose results were revealed at the end of 2013, and has been trying to find sources for recapitalisation ever since. However, according to the bank's press release, the activities have not yielded any results.

The central bank ordered that Banka Celje must carry out a capital hike of at least EUR 160m by 25 April, otherwise the government would raise the capital and transfer its bad claims to the Bank Asset Management Company (BAMC), the bad bank.

On the other hand, Banka Slovenije extended the deadline for a recapitalisation of Gorenjska banka until 31 December 2014, prompting the government to do the same with its commitment to recapitalise the bank with state funds.

Gorenjska banka, with an estimated capital shortfall of EUR 328m under the worst-case scenario, said that it would shore up through internal measures, including rationalisation of capital use.

The government moreover said today that its commitment to recapitalise, if needed, Raiffeisen and Hypo Alpe Adria banks was no longer required.

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